While doing the weekly market walk-through video for the price action War Room, I spotted this awesome looking price action signal on the GBPCHF 8 hour chart.
There was also a reversal pattern alert waiting for me on my mobile, thanks to the Battle Station (shown on screen).
Why do I like this trade idea so much?
We can see GBPCHF has cleared some consolidation, pushing into higher highs recently – a sign of strength.
After a short pullback, GBPCHF re-tested the previous break out level resistance, and showed more strength by printing a price action reversal signal.
This location is a “hot spot” for buy signals to occur since the mean value and a swing level intercept one another.
Price aciton is communicating with strong evidence that it wants to make a push into higher highs.
We’ve also got a small retracement happening down the signal candle – allowing for better entries, and higher profit potential.
Maybe the probabilities be in our favor!